How to compare car insurance quotes (without getting a worse policy)

Rates for the same driver and car can vary from one insurer to the next, and they can change at every renewal. Comparing quotes is the only way to see where you stand. The catch is that a lower price sometimes just means less coverage. Here is how to compare fairly.

1. Know what you have now

Pull up your current declarations page. It lists your coverages, limits and deductibles. Write down:

• Liability limits, often written as three numbers such as 50/100/50 (bodily injury per person, bodily injury per accident, property damage, in thousands).
• Collision and comprehensive deductibles, if you carry them.
• Extras such as uninsured motorist, medical payments or personal injury protection, rental reimbursement and roadside assistance.

2. Decide what you actually need

Nearly every state requires drivers to carry liability insurance, but state minimums are often low compared with the cost of a serious accident. If you cause more damage than your limits cover, you can be personally responsible for the rest. Many people choose limits above the minimum, especially if they have savings or a home to protect.

If your car is financed or leased, the lender will usually require collision and comprehensive. If your car is older and worth little, dropping those coverages may make sense. Compare the yearly cost of the coverage with what the car is worth.

3. Get quotes on the same coverage

Use the same limits, deductibles and extras for every quote. Have this ready:

• Driver's license numbers and dates of birth for everyone on the policy
• Vehicle identification numbers (VINs), or year, make and model
• Your address and where the car is parked
• Accidents and violations in the last few years
• Your current insurer and how long you have been continuously insured

You can get quotes directly from insurers, through a captive or independent agent, or through a comparison or referral service. Our insurance comparison page explains how each route works.

4. Understand what moves the price

Insurers commonly look at your driving record, claims history, the car you drive, where you live, how much you drive, and your chosen coverage. In many states they also use a credit-based insurance score. Some states limit or ban certain factors, so what applies to you depends on where you live.

Discounts vary by insurer. Common ones include bundling auto with home or renters insurance, insuring more than one car, safe driving, good student, paying in full, paperless billing and usage-based programs that track your driving. Ask each insurer which discounts you qualify for.

5. Look past the price

Two quotes with the same price are not always equal. Before you choose, check:

• Claims handling. Your state department of insurance publishes complaint information. The NAIC's consumer site also has complaint data by company.
• Financial strength. Independent rating agencies grade an insurer's ability to pay claims.
• Service. How you file a claim, whether you can choose your repair shop, and whether rental coverage is included.

6. Switch without a gap

Buy the new policy and confirm its start date first, then cancel the old one effective the same day. A lapse in coverage can be illegal while you drive, and it may raise your rates later. Most insurers refund unused premium when you cancel mid-term, though some charge a cancellation fee. Ask before you switch.

The bottom line

Compare quotes at renewal and after big changes like a move or a new car. Lock in the same coverage on every quote, then weigh price against claims service and financial strength. A little time spent comparing is the most reliable way to know you are not overpaying.